Depreciation and sale of equipment (questions 1 and 2): Downton Smith Ltd. purchased a piece of machinery on Jan 1st 2013 for 400,000. The company estimated a useful life of 10 years and a residual value of zero for this asset. On December 31st 2015, the company decided to sell the machinery for 350,000. What is the accumulated depreciation of this piece of machinery on December 31, 2015 right before selling it?

a. 80,000 b. 120,000 c.280,000 d.320,000 9.

Question 2 .What is the gain or loss on the sale of this machinery at the end of 2015?

A. Gain of 50,000 B. Loss of 50,000 c. Gain of 70,000 D. Loss of 70,000